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Us 15, U.s. 9, Apple 5, S&p 4, Ben Bernanke 4, Cantor Fitzgerald 4, Bgc 4, Europe 4, Washington 4, Jon Hilsenrath 3, Scott Bauer 3, Scott 3, Warfarin 3, United States 3, Humana 3, Joe 2, Cme 2, Carmelo Anthony 2, Joe Keating 2, Eaton 2,
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  FOX Business    FOX Business After the Bell    News/Business. Stock  
   market updates. New.  

    September 11, 2012
    4:00 - 5:00pm EDT  

prepares to ring the bell. financials looking good, right? >> reporter: [inaudible] david: once again, rude -- rudy giuliani remembering this day 11 years ago, and we do remember what happened. one of the things that did happen, of course s the stock market did come back. it had to close down for a few days, but it came back long before people expected. it shows you the resilience of the american economy and the stock market in particular. meanwhile, the unemployment is up, bad times on many fronts in the economy in the united states, but look what's happening. the market just keeps laughing it off and going up in the face of danger, all of the indices are up today. as cheryl and i were talking, they did come down a little bit. it was triple digits in the dow a little earlier in the day, it came down from that point but still a 69-point gain b is quite impressive. all of the indices, nasdaq the
smallest of the gainers today, just up .02%, but russell 2000 up as well. when the bell rings, the action begins, a former hedge fund manager who says the federal reserve does have a secret weapon that a lot of people aren't talking about that it could fire this week. it's not more money printing we're talking about. also, we have a fox business exclusive interview with legendary investor mark babier, he's going to outline the five reasons why he thinks equities could fall, but first, today's data download. stocks ended the day in the green but well off session highs. energy and financials were the best performing sectors while consumer staples and utilities did lag. the dow hit its highest level since december 2007 in intraday trading. meanwhile, oil pushing higher for the fifth day in a row closing above its 200-day moving average for the first time in three weeks. crude ended up 63 cents at $97.17 per barrel. opec projecting today that
global demand for oil will rise by 800,000 barrels next year. metals getting a boost today on expectations that the fed will announce some kind of money printing or some other such thing, copper ended up 1.2% at $3.69 a pound. this is the highest settlement in four months. gold also edged higher just a bit closing at clash -- $1,730 an ounce. we have scott bauer who's going to give us his top three plays for the fall, and legendary investor mark faber joining us. let us start with scott at the cme. scott, first of all, as i was mentioning before, fed expectations seem to be weighing down a little bit. what happens if the fed announcement on thursday disappoints? how's the market going to react to that? >> yeah, david, first of all, i couldn't agree with you any more. over the last couple days we have seen all of these wild expectations really get reined in. so if we don't see what the
market is looking for, if we don't see an extension of qe or even a full-out qe3, these traders are telling me we will probably see a maybe 4 or 5% pullback in the s&p, maybe down to 1380, 1385 at which point these guys want all in. these guys want all in. there's so much money on the sidelines. the money on the sidelines is looking for any sort of pullback -- david: by the way, how much money are we talking about? i've heard figures from $1-$2 trillion on the sidelines, what do you think it is? >> i've heard the same amount as you have. all i know is when you look at statistically what wyoming hearing over the last -- what i'm hearing over the last five years there's as much as there has been since the highs back in 2007. it's an incredible amount. people are looking for that pullback. david: then people are going to go in with both hands and buy stocks like never before. joe keating is center state bank executive vice president, chief
investment officer. good to see you, joe. so, first of all, you have the ecb announcing, essentially, that they're going to print money nonstop, print euros nonstop which is kind of scary in and of itself, then you have the fed about to announce a new round of something. are we becoming a little too dependent, joe, on these central banks to pull us out of the fire? >> well, from an expectation perspective, yes, david. think about what the ecb did. they're basically buying time. obviously, they're going to help lower the borrowing costs of some of the at-risk european countries, but they're just buying time to basically put in place a fiscal union, a banking union and a political union to go along with the monetary union that's already in place. to the federal reserve, we're really hoping they don't do much because people like to say that qe2 gave us a big gain in stock prices, i would argue that gain in stock prices from the fall of '10 to the summer of 2011 was really based upon a growth in earnings and really what qe2
gave us was higher commodity prices, notably food and gasoline. david: well, when will this slow economic growth that we see nationwide with the high unemployment hit the corporate earnings? >> well, i think the peak in corporate earnings is basically here, david, until -- david: so we've got in where to go but down from here in terms of corporate earnings are concerned? >> i think we've plateaued because we have very low nominal growth, and we've got record high operating margins. so we need to see a reacceleration in the economy, and the only way that's going to come about is if we see a change in fiscal policy not dependent on monetary policy. david: scott, what about your theory that, you know, maybe there's a pullback, but then there's so much cash on the sidelines, there's no place else for it to go but the stock market because returns are so dismal in bonds and treasuries, etc. what about if corporate earnings really begin to slow down dramatically? won't that keep those people still on the sidelines, the
people with cash? >> yeah, but let me just take the opposite side of that for a second. we've seen corporate earnings slow down in this quarter, this past reporting quarter we've seen more companies than in a while really give guidance that was lower than expected going forward. when the next round of earnings come out in, start anything mid october and they come in earnest, we are already going to see lightened expectations. i would, i would suspect that the bulk of these companies which have lowered their guidance, if they come out with guidance or with earnings that meet or exceed that, to me, is going to tell people on the sidelines, you know what? we've seen that bottom, we're still getting in. david: okay, i want to get back to joe for his stock picks was was -- and you suggested we go to dividend-paying stocks, top among them eaton corporation, aerospace, they have a 3.2% yield. why do you like them? >> well, eaton has, basically, grown their dividend payout by 52% oh -- over the last four
years. that's a remarkable number. they've paid a dividend for 89 years. they're looking to grow their dividend payout about 20% over the next four years, so we think it's a solid place for investors to go. david: okay, you have republican there as well, and then we have one of those master limited partnership deals, 'em bridge energy partners. a lot of o people are recommending these things. is there any downside risks, i'm thinking of tax changes, for example? >> that could be a downside risk, but the market cap of these companies is so small, i really don't see the nature changing. you're able to get a 7.6% distribution yield, we think it's a great place for people to get a great income. david: joe keating, thank you very much. scott, we'll check in with you in a few minutes. meanwhile, the s&p has really been on a tear from when it bottomed in early july to where it is now. it's up about 10% in just two months, and even though our next guest is breathing doom and
gloom about this bubble getting ready to pop, he is still holding stocks. mark faber is the editor of the gloom and doom report, he joins us now in a fox business exclusive. glad you're here. too up for me to misproo announce your name. >> thank you, thank you. david: all right. this is a key question, how much longer can stocks do well when our economy is struggling? >> good question. as long as you print money, asset prices will go up, and you will have negative real interest rates, so to hold cash is dangerous. bonds are relatively unattractive. so i think stocks may still go up somewhat. i think a lot of qe3 and of the buying by the ecb of bonds in europe has been discounted by the market. but if a big qe3 is announced, then stocks could rally maybe another 3, 4, 5%, and then there will be disappointments.
so i think that sometimes in the next six months you can buy pretty much everything 20% cheaper than right now. david: in many six months. >> but 20% is nothing. if you can't take a downdraft of 20% in asset markets whether it's gold or copper or real estate or equities, then don't get up in the morning. [laughter] stay in bed. david: how is this decline likely to happen? is it going to happen in a short period of time? is it going to happen gradually over the next couple of months? >> in '87 i predicted the crash. i didn't know it would happen one week after i predicted it. and so things can happen very quickly. david: do you see another october crash on the horizon? >> i don't see it, but it could happen. so that's why i recommend people to have, essentially, bonds and cash and to hold some gold. i mean, we were at -- most of these people here they talk about dividend yields. you know what could also happen is that corporate profits disappoint more than is
expected, and that some dividends will be cut. if i like dividends, then i buy, essentially, asian skill shares. david: do you ever play in the european bond market? with these bonds going up and down wildly, somebody's making money in trades. >> yes. but for the first time in my life three, four months ago i started to buy european stocks. and before you had a guest who was talking about dividend shares. david: yes. >> i bought telecom companies and high dividend-yield stocks in portugal, in spain, italy and france. i think europe is a disaster economically, but you understand it's not important what is good and bad. what is important is the price at which you buy an asset. and the s&p today is at over 1900. -- 1400. we were at 166 on march 6, 2009.
in europe many markets three, four months ago were at or below the 2009 lows. so relatively speaking, they were very, very cheap. now they rallied 30%. now i'm staying on the sideline. but that they drop again 20%, i will increase the position. david: when you have a central bank printing money to try to keep a slow economy moving, an economy which may be not moving at all if it weren't -- >> correct. david: isn't that almost by definition a bubble, and aren't bubbles by definition going to burst? >> yes. but the big bubble may not actually be in equities. the big bubble is probably in fiscal deficits. with this artificial low interest rates, the government has no problem to finance its deficits. and believe me, whether the republicans will be in the white house next year or mr. obama, the deficit as far as the eye can see will stay above a trillion dollars.
nobody will really -- nobody can really cut spending meaningfully. david: particularly as long as the government can borrow at zero interest rates. >> precisely. so the fed will grow and grow and grow, and government debt is the most unproductive debt. so if you borrow to buy machine ri -- machinery and build a factory, you borrow to generate cash flow. consumer credit and government credit is the worst type of borrowing you can have. david: so how is the united states bubble, the bubble of the government debt, likely to bust? >> it will, the whole system will collapse one day globally. but between now and then, maybe stocks can go up, the dow could go to 100,000 or to a million -- david: simply because there's no other place to put your cash. >> well, in the u.s., now, real estate in some areas is very cheap. not high-end new york where sandy just sold his condo for $88 million u.s. david: right, right.
>> a condo that would cost more than a million u.s. was unthinkable. david: are you still buying real estate in places like nevada, for example? >> i'm not, because i'm a foreigner. but i can tell you if i were an american, i would spend all my time buying up properties in georgia, in arizona, in florida, in nevada. and you have a lot of properties that are inexpensive. david: and still in kazahkstan, right? >> yes, i like kazahkstan. this is a country that should have a higher credit rating than the u.s. they have a fiscal surplus, they have a current account surplus, they have a trade surplus, and debt to gdp is 20%. david: boom, gloom and doom, he's mentioned it all in this particular visit. thank you very much. have a nice trip. well, the federal reserve kicks off its two-day policy meeting tomorrow. someone says don't expect another round of money trading, the fed has another weapon to fire. and speaking of the fed, could
the apple iphone actually be more effective at boosting economic growth than want tative easing? -- quantitative easing? also moody's has some tough words for congress: get your act together or prepare for another downgrade. that story in today's "speed read." ♪ [ male announcer ] what if you had thermal night-vision goggles, like in a special opsission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin.
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david: s&p futures closing right now, let's go back to scott bauer on the floor of the cme. scott, it's not until thursday at about 12:30 that we hear what the fed's up to, but i guess that's all being worked in right now into all those calculations down there. >> oh, yeah. and tomorrow's announcement, you know, with whatever comes out in germany is at this point almost an oversight. everyone is focusing in on thursday, and like i said earlier, there's not a big buzz about the fed really going to do anything out of the ordinary here. so, again, if we do see a pullback on any sort of news that the public doesn't like, there's going to be a lot of money coming into this marketplace a lot of these traders telling me that is, you know, if we see this pullback, boy, what a point to get long
here. david: yeah. well, even on short-term long we had mark faber saying maybe it's time to get it. thank you, scott bauer, appreciate it. well, anticipation for apple's iphone 5 is growing, and shares of one of the possible component makers stands to benefit from all this. let's go to nicole petallides at the new york stock exchange. this is a bank stock play for apple, right? >> reporter: that's right. and this is what some of the super smart people do, they get a product and say we like this product, who helps to make this product? in this case when you're looking at the apple iphone, you can actually look at the radio frequency chip maker rf micro devices. they've had a big part in the apple iphones, however, they may have a bigger role in the iphone 5 which, of course, we're all waiting for. maybe tomorrow we'll get more details on that, but if they have more parts in the latest devices, their share of earnings could be on the move to the upside. the stock certainly reflected that today, up about 9%. back to you.
david: all right, nicole, thank you very much. some are saying if the new iphone 5 are doing what some are saying it could, the fed and congress are nowhere near getting close to what the new apple iphone 5 could do to boost the u.s. gdp. fox business' lauren simonetti joining us now with all the details. well, this could make ben bernanke jealous. >> really. david: apple can do more than he can. >> apple saving this world at this point. a jpmorgan chief economist put out a note last night, essentially saying eight million sales of the apple iphone 5 could be sold in the fourth quarter here in the u.s. at $900 each. he gets the $400 figure by assuming that the retail price is 600, chop off $the -- $200 for the imported parts. $3.2 billion is the con contribn to the holiday quarter to the gdp here in the united states. the analyst says this would boost annualized gdp growth by a
third of one percentage point, and that would limit the downside risk to their growth productions which remain at 2%. david: well, let's just weigh this out because we've had a couple of qes in the past, and what has happened to our economic growth is it has gone down rather than go up. >> exactly. david: so, in fact, if we could get a boost from apple's iphone of a third of 1%,33 basis points, it's doing better than the fed by definition. >> david, i crunched the numbers, and in many cases it's comparing apples to origins, but i look at the iphone 4 and 4s release, and what quarter they came in and the jump in the prior quarter. i'm just saying, it doesn't mean much, but you could get all sorts of silly stuff -- david: i'd rather have people get excited about an american product than they are about the federal reserve printing money. >> consumer spending. david: great stuff. thank you very much.
well, cantor fitzgerald is holding its annual charity event honoring its 658 employees killed on september 11th. we're going to take you live to the trading floor next. also forget qe3, we have a former hedge fund manager who says the federal reserve's got another weapon up its sleeve. we'll tell you what that is coming up on "after the bell." want to try to crack it? yeah, that's the way to do it!
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david: time for a quick speed read of some of the day's other headlines, five stories in a minute. first up, moody's warning it's likely going to downgrade the u.s. aaa rating if government officials fail to address the
national debt. negotiations on how to reduce the high ratio of debt to gdp will be key to maintaining it top credit rating. the nation's debt topped $16 trillion less than two weeks ago. the sale of aig stock is expected to generate at least $12.4 billion in profit for taxpayers, treasury department says the sale will reduce the government's stake in aig to 21.5%. phillips is eliminating another 2200 jobs bringing the total to nearly 7,000 cuts. the company expects the cuts to account for $33 million in savings. chrysler is rolling out more than a half dozen new models over the next 18 months, the new vehicles are phase two of the car giant's turn around plan. and youtube is releasing its own iphone app. the changes come as apple prepares to drop the video services built-in app from its new phones. and that is today's speed read. just made it under the wire. well, cantor fitzgerald is holding its annual september 11th charity event today, the
bond trading firm was one of the hardest hit that day. it lost 658 employees. in honor of their memory, the firm is going to donate 100% of today's revenues to several charities around the world, and sandra smith joining us lye on can -- live on car to have fits -- cantor fitzgerald's trading floor. >> such a huge day. celebrities trading, money going to those charities, a big day. >> wasn't it wonderful, sandra? this is your first charity day. >> reporter: yes. thank you for having me. >> hey, it's been our pleasure. this is my third. the excitement keeps building and building. and a big thank you has to go out to all of our clientele. my clientele, the firm's clientele, everyone really came through today. >> reporter: let me tell you, i did a $750 million trade myself. >> i can't wait to see the total numbers. i think we're breaking records today. >> reporter: so what does this day mean for you? >> well, i'm a native new
yorker, third generation on both sides of my family, and i was supposed to be at windows on the world for the risk management conference that morning. and i got there a little late, and i stood there and watched the destruction occur in my backyard, and it hurts me every day, it hurts me today, but we are moving forward, we're stronger, we are showing the world what we can do, and bgc charity day is leading the way. >> reporter: and i think this is a prime example of moving forward, bgc lost 658 of your employees on that day in the world trade center towers. that was about two-thirds of your employees. but then bgc, which started several years ago from cantor fitzgerald, and you have been able to thrive. you've gone public in this environment, now you have over 8,000 employees worldwide. >> well, that's right. and that's because of the leadership and the vision of mr. howard rudd nick -- >> reporter: who we had on the fox business network earlier today. >> absolutely. and his vision and sense of
giving and sense of leadership for our firm has everybody on the same page, working for the same common cause and giving back has got to be part of everyone's positive -- process. >> reporter: how about the market environment? obviously, it was a tough run immediately after 9/11, but the years since have, obviously, been very difficult to start and have a business thrive which you've been able to do. are you hiring in this environment? >> oh, absolutely. we're hiring on the bgc side, on the cantor side, and there is a need for services in this environment where you're adding value. and that's what we do here, we add value. >> reporter: and what about the actual markets themselves? they've been extremely volatile, but here we are, you're the head of not only derivatives, but also equities for bgc. on a day where we're sitting at multiyear highs for the stock market. >> well, exactly. s&p, russell up 14% year to date, the nasdaq up over 20%, things are going great.
it must be cautious, but at the same time i think the path of least resistance is to the upside. >> reporter: well, and that being said, i want to ask you about your tie real quick because we have to talk to one of the wounded warriors, but a lot of the stars that we had here today -- >> oh, yes, absolutely. the carmelo anthony foundation, which i work on, is helping neighborhoods rebuild basketball courts -- >> reporter: and he made a presence here today, and we talked to him. >> and he did just that. and the beautiful thing about carmelo anthony, alan houston, all the knicks coming here to support, coach woodson, is that these players give so much back outside of the game, and that's what brings them together on the court. they do it here for bgc, but we're doing it this weekend in puerto rico, and we do it all year long. >> reporter: that's huge. >> always do it. >> reporter: we have to leave it there. thank you so much, richard anthony, head of derivatives and ec by -- equities here. i wanted to stop at one of the
wounded warriors, army major ray negron. we don't have much time, but this was a big day for you as well. >> yes, it is. it's fantastic to see 11 years can pass after such a tragedy, and yet as a country, as a people we still don't forget. and the generosity of this firm, of its clients to be trading only on weekdays, take out hold days, how many days are left for them to make money, and they give an entire day to us. >> reporter: absolutely. >> their expenses remain -- expenses go up because they actually bring in food, they bring in extra personnel to walk around. it's really, it's eye-opening, and it's refreshing, and it was just a beautiful day from 8:00 up til now. >> reporter: army major ray negron, thank you so much. we'll leave it on those beautiful words. it was a great day here, guys, and a great day to remember 9/11 and all the victims. david: only 11 years ago. i hope we never forget. thank you very much, sandra, appreciate it. well, forget about more money printing, we have a former hedge
fund manager who says the fed may have a surprise solution, that is a solution, to help the economy. he'll tell us what that is. also, the own or of more than 60 franchises says regulations from washington are keeping him from growing his business. that's why unemployment is going higher. and let us know what you think about the government's impact on small businesses. lock on to facebook -- log on to, click the like button and sound off. when i found out my irregular heartbeat
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as stopping may increase your stroke risk. other side effects inclu indigestion, stomach pain, upset, or burning. pradaxa is progress. having afib not caused by a heart valve problem increases yourrisk of stroke. ask your doctor if you can reduce your risk with pradaxa. less expensive option than a traditional lawyer? at legalzoom you get personalized services for your family and your business that's 100% guaranteed. so go to today for personalized, affordable legal protection. david: time for a look at today's market drivers. stocks ending the it the green but off session lows. utilities lagged. dow touched highest level since december 2007 intraday trading. bonds fell with the 10-year yield touching its highest level in three weeks. the 10-year treasury end up
a basis point at. a lot of action in the currency pits. euro rising to the highest level in almost four months against the dollar as the dollar index fell to the lowest level since may before the federal reserve start as two-day meeting tomorrow amid talks they will print more money and will do something. that is what we'll talk about next. according to citigroup market expectations for another move by the fed rose a record 99% in august but we have somebody who says don't expect any additional money printing. the fed has another device they could deploy that could be more effective. he is a former hedge fund manager and good friend of mine. >> good to see you, david. david: first what the fed telegraphed what they were doing to do. this is from the minutes of july 31 meeting. would be warrantedded fairly soon unless incoming information pointed to a substantial and sustainable strengthening at the pace of
the economic recovery. as we know now, the economy has not strengthed at all, in fact it has done the opposite, points to getting worse, weaker, does that mean it is inevitable that the fed will do something? >> he must do something this week. i think he is pregnant. david: so what is he going to do? what baby is he going to deliver? >> three options. he could extend the language for another two years. could do substantial quantitative easing, lsap, large-scale asset purchase. or tinker around with the interest paid on excess reserves to the banks. david: let's talk about the second one first. you said, if he prints money he can't print a piddling 200 billion. he has to print something like 600 to 800 billion to make it impact the market, right? >> this could be a dud if he came in with half a loaf on the qe, in my opinion. so either we do something in the neighborhood of $100 billion a month for the next six months, or, some other
program. if he says, oh, i'm going to do00 billion over the next six months, people will say good-bye. david: what should he do? do you think that a big printing of $800 billion, all that money printing has done nothing to stimulate the economy. economic growth is going down. >> i'm on record saying enough is enough of ultramonetary policy but that's irrelevant. the question is what the fed is going to do because i don't much to say about it. the answer i think there will be a third option that comes out. extending the language is not going to accomplish anything and i do think he can push the string a bit if he does change the interest rate on excess reserves. either down 15 points. david: this is the overnight deposit rate. other people came on the show, wayne angell, former fed official says all that does is encourage banks not to lend. gives them a little bit of money. not a lot. 25 basis points to hold the
money with the federal reserve. if you lowered that rate a little bit, it might goose them a bit to get the money, get the banks out there. >> a trillion dollars of money doing nothing. it costs the bank nothing. earn 25 basis points. in order to change things, the fed may force the banks to push this money into the system. the and by that they would move interest rates slightly to negative levels. david: we have one indication that might be exactly what ben bernanke is going to do because jon hilsenrath of "wall street journal" very often telegraphs. he has a very good relationship with ben bernanke and he has been suggesting that ben bernanke might do this. >> he hinted it was on the table and, i agree with you, that, jon hilsenrath he speaks for ben. when ben wants to, introduce an idea to the financial community of things that might happen or what he has been discussing uses
jon hilsenrath to do it. so there was a blog from hilsenrath over the weekend. and his wording on this possibility of cutting the ioer to some level below where it is now, maybe even as low as zero, which i don't think will happen, is going to be discussed. he made it also clear that there is opposition to it in his verbage. it will be negotiated, debated and may or may not happen. i'm in favor of it happening. david: bruce, i'm getting the wrap. you use trade for a currency. you made a lot of money doing that. is there any currency in the world worth holding right now? >> gold. david: you think gold is currency unlike ben bernanke who said it wasn't? >> what has upside where you are gold is probably better than the dollar or the, euro or the japanese yen. i would prefer it over the canadian dollar and norwegian crone too. david: bruce, thanks very much. franchises have been a bright spot in the economy,
growing and creating jobs but uncertainty on capitol hill and a lot of regulations is threatening the industry and hampering growth. the owner of more than 60 franchises across the country telling us the number one thing washington can do right now to help his industry. personal and business taxes are about to go up big-time, but there might be good news coming from d.c. we'll tell you what congress could be doing to actually save your money. ♪
>> i'm adam shapiro with your fox business brief. all three indexes ended in the green. blue-chips ended highest
level since 2007. ford is set to talk about life after alan mulally. according to "the wall street journal" the topic of a succession plan will be on the agenda when the board of directors meets on thursday. many expect mark fields will be the chief executive when mulally retires. the company issued a statement to fox business in a response saying, ford doesn't comment on speculation. majority of u.s. employers don't expect hiring plans to change during the fourth quarter according to the quarterly hiring survey by manpower group. most employers won't hire because of uncertainty about november elections, federal budget and economic struggles in europe and china. that is the latest from the fox business. [ female announcer ] you want family dinner to be special. dad, we want pizza. you guys said tacos. [ female announcer ] it doesn't always work out that way. you know what? we're spending too much money on eating out anyway. honey, come look at this. [ female announcer ] my money map from wells fargo
is a free online tool that helps you track your spending. so instead of having to deal with a tight budget, you could have a tighter family. ♪ wells fargo. together we'll go far. david: the international franchise association is meeting to discuss how the administration is impacting small businesses across the country. many of the folks are saying
uncertainty in business regulation is hindering that their growth. what do the businesses want to see from washington? joining us the national restaurant development president. thank you for coming on. what franchises do you own. >> i primarily own popeye's and dominoes. david: about how many do you have? >> 13 popeye's and 23 dominos. david: how are you doing? >> we're doing okay. it has been bit of a struggle and keeping with ferrous things in the economy. it is not bad and can be better. david: are you expanding at all or holding your own? >> i'm expanding but not as fast as we're capable of or we would like to. we are expanding but i tink we have a lot more capacity. we're not willing to do that at this time. david: even some of those expanding may be expanding
facilities. they're cutting back labor and that is why unemployment is remaining high. is that what is happening to you. >> that is absolutely right. we have to plan for regulatory things coming down, for example, the health care law, et cetera. that involves taking a look at the labor pool and deciding whether or not we want to expand the pool and having an impact for sure. david: you brought out the subject we wanted to focus on which is regulations. i think if i was to summarize your complaints about them, which i read before this interview, that that attitude from washington, one size fits all, whether you're talking about obamacare, whether you're talking about work place regulations, whether you're talking about financial regulations, you know, one size fits all doesn't work in america when you have such a variety of businesses big and small. >> that's exactly right. the small businesses, capacity and, their ability to comply with some of these regulations is very different from large businesses. since small businesses, particularly franchising which accounts for 18
million jobs, one out of every eight jobs in america, is such a big generator of jobs we wish we could be consulted in the regulations so we participate in their formation. it is not reasonable for small businesses to comply with exactly the same regulations you're deciding for small business. david: the president says he does consult businesses large and small. he is talking to small business people. that is not your experience. >> ifa for a period of now making recommendations. our ceo has written a letter to the president et cetera, advising some of the things you're doing will not work and they will hammer business. if there is consultation, it is not being adhered to because i don't see it. >> the president says in his defense. look i have all kinds of tax credits. i have the small business lending fund, all kinds of programs oriented specifically to people like you, the small businesses to which you say? >> i don't think many of those programs are working
and if you look at the results of those programs they are not working, and the anticipation of the expiration of some of these tax credits, et cetera is example of something that is really going to hurt our ability to grow business. david: aziz, thank you for coming on. i hope the president listens to you. national strength development president and ceo. good to have you here. your taxes may be headed higher if congress can not get its act together extending personal and business tax breaks. what is happening there? is your tax bill going up? we'll be live in d.c. with the very latest twist in the story. bad news for boozing nights. a new technology may be able to tell if you're drunk, by scanning your face, not your breath, just your face. we'll tell you how that works coming up. ♪ .
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david: watch out, folks. congress is returning to work this week. the senate may vote on the tax extenders bill. fox business's peter barnes joining us from d.c. peter, this is not merely keeping tax rates the way
they are, right? that is not what is meant by tax extension? >> that's right, david. i'm using jargon here. the tax extend ders refer to a grab bag of the tax breaks the congress extend every year like the r&d tax credit. they include pretty big items patching alternative minimum tax for many middle class families. $132 billion over two years. it is not chump change. banks and lobbyists, there are plenty of special interest breaks in the bill. $78 million for auto racetrack owners for faster writeoffs of their investments. 248 million for movie an tv studios to help keep production in the u.s. whether other countries offer deals to poach it. $7 million for tax credits for electric powered motorcycles to encourage environmental and energy goals. supporters can justify all of these of course. it is very hard to get rid of them, especially when they might help the economy,
maybe maintain or create some jobs in an election year. >> the problem with judging each individual provision is that there is very little discussion about which ones are worthwhile, which ones should be eliminated. similar to other expenditures in the government. there is always someone who says we absolutely need this or else we'll leave the country, we'll do something else. >> but, supporters claim they got rid of 21 provisions including, david, your favorite. the tax credit for electric golf carts. that passed the senate finance committee last month, 19-5 with six republicans voting in favor. critics say this bill drives home the need for comprehensive tax reform. david: i'm trying to imagine how the country could possibly do without electric motorcycles. talk about national security interests at stake here? we need these things to survive as a nation, right? >> yeah, well the problem is,
that if you give it to one, for example the tax credit to buy an electric car, like a chevy volt or something, then the others come up and say, hey, you've got to be fair to us too and give us that break if it is a motorcycle. but not a golf cart this time. david: peter barnes in d.c. trying to explain the madness. thank you, peter. we'll break down the market-moving events that could impact your money tomorrow. tomorrow's trades today. coming next. hey! did you know that honey nut cheerios
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i'm an expert on softball. and tea parties. i'll have more awkward conversations
than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. so let's talk about coverage. based on this chart, who would you choose ? wow. you guys take a minute. zon, hands down. i'm going to show you guys another chart. pretty obvious. i don't think color matters. pretty obvious. what'sretty obvious about it ? that verizon has the coverage. verin. verizon. we're going to go to another chart.
it doesn't really matter how you present it. it doesn't matter how you present it. verizon. more 4g lte coverage than all other networks combined. can. david: time to go "off the desk". forget about trying to walk in a straight line. your body temperature might give away how many pgs drinks you've had. a new study thermal imaging cameras may determine levels of intoxication. alcohol causes blood vessel dilation leading to a person's nose to become warmer while their foreahead stays cooler. watch out for the cameras. number one thing, watch out apple's new event for the i did, iphone 5. they don't expect any details about the mini ipad or the apple tv the event kicks off at 1:00 p.m. eastern. tomorrow here on fbn on "after the bell", we kic